AIA Engineering Limited — Q4 FY26

AIA Engineering Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=zAa5m_Fc2n0 Published: 3 weeks ago

0:00 Good evening ladies and gentlemen. Thank you for standing by. This is Dorin the moderator for your call today. Welcome 0:07 7 seconds to the post results conference call of AIA Engineering Limited. 0:12 12 seconds We have with us today the management team of AIA Engineering Limited. 0:18 18 seconds At this moment all participants are in a listenonly mode. Later we will conduct a question and answer session at that time. If you have a question, you may press star and one. 0:30 30 seconds I would now like to turn the conference over to AIA engineering management team, Mr. Kunal Sha and Mr. Sanjay Majutar. 0:38 38 seconds Thank you and over to you sir. 0:40 40 seconds Thank you so much. Uh very warm welcome to all of you. This is Kunal and I have 0:47 47 seconds Sanjay here with me on the call. Uh I think this quarter is business as usual. 0:54 54 seconds uh uh there are a few highlights that I would like to discuss but generally uh speaking nothing of note that uh is 1:02 1 minute, 2 seconds different from all that we have spoken about last uh quarter. Uh I will start with a quick recap of numbers and then 1:10 1 minute, 10 seconds we can get into Q&A. Uh we've done 70,000 tons uh of sales for the quarter for a full year sales of 258,000 tons. 1:20 1 minute, 20 seconds uh largely flat from full year last year which was 255,000 tons and compared to 68,000 hot tons in the fourth quarter 1:27 1 minute, 27 seconds last year. Uh there is it has translated to 2551 crores of topline for the 1:34 1 minute, 34 seconds quarter and 4355 crores for the full year. uh a bit of 502 crores uh for the quarter and uh 1:45 1 minute, 45 seconds 1744 for the full year translating into a profit after tax of 393 crores and a full year profit after tax of 1270 1:54 1 minute, 54 seconds crores. Uh this quarter I think has been the highest ever profit after taxa 2:01 2 minutes, 1 second you know for the company. uh and and uh we are very happy to report numbers where in a period of serious macro 2:10 2 minutes, 10 seconds uncertainty, serious macro headwinds and uh you know this is the a lot of these 2:18 2 minutes, 18 seconds outcomes are linked to a lot of effort that we are bringing to our customers ultimately to improve their operations. 2:23 2 minutes, 23 seconds Right? So that is one aspect of it. Of course there is a uh benefit that accured on account of uh 2:31 2 minutes, 31 seconds currency there is a there is a you know 65 crores currency that's sitting in the 2:38 2 minutes, 38 seconds in the IITA for this quarter and uh which is about four or 5% in in IIT or operating margins coming 2:46 2 minutes, 46 seconds from the currency uh you know as other income. Of course, if the currency remains at this level, then it will translate into the rupee realization. 2:57 2 minutes, 57 seconds So, moving on, our total other income for the quarter is 132 crores and 474 3:05 3 minutes, 5 seconds crores for the whole quarter. 15 for the whole year. 15 crores comes from export benefits business as usual, treasury 3:12 3 minutes, 12 seconds income of 67 crores, again linked to a treasury business as usual and a foreign exchange gain of 65 cror 64.47 47 which 3:20 3 minutes, 20 seconds is linked to the rupee depreciation. Uh we also had higher amount of sales of uh castings in 3:29 3 minutes, 29 seconds this period. So the combination of the rupee weakening or income on account of 3:36 3 minutes, 36 seconds uh paraby and the product mix has translated to a realization for kilogram about 178 for the quarter but for the 3:45 3 minutes, 45 seconds full year remains at 165. So I think uh the next set of questions would be what does this quarter mean? How do I aortion for the rest of the year? I think this 3:54 3 minutes, 54 seconds quarter has this oneoff in terms of currency and the product mix. Uh one can consider 165 as a business as usual 4:02 4 minutes, 2 seconds realization for the full year. Uh moving on I think working capital at par with what we've done at 70 includes about 45 from mining and 25 from non-mining. 4:14 4 minutes, 14 seconds uh and and for the full year 258 it's about 160 comes from mining and the rest comes from non-mining 4:21 4 minutes, 21 seconds uh with that said total cash net cash is about 4,300 crores uh we spent about 130 4:29 4 minutes, 29 seconds crores on Apex uh this year we we you know other than our investments in Ghana 4:36 4 minutes, 36 seconds and China which as we speak are you know under paperwork approval procedure so there is no spend I also do not have an 4:44 4 minutes, 44 seconds estimate of how much we will spend on the plan plans because that depends on or how much will be spent this year because as we speak uh they are in I 4:53 4 minutes, 53 seconds think a WIP status as far as just getting everything else around it put together. I hope in a quarter or two I 5:01 5 minutes, 1 second have more updates on what's going on with those two plants. uh but for other than KEX that we may do in plants 5:08 5 minutes, 8 seconds outside of India for India uh total outflow of between uh 60 crores and 100 crores on all sorts of maintenance apex 5:17 5 minutes, 17 seconds that we need for our plants you know balancing equipment upgradation costsaving initiatives etc and some investment to finish out our uh 5:26 5 minutes, 26 seconds renewable portfolio you know after which I think we we're going to spend about 30 crores that's balance on that uh the 5:33 5 minutes, 33 seconds renewable will about 60% of our power or 65% of our power once that comes on line which is by June or July will come from 5:42 5 minutes, 42 seconds renewable sources. Of course, it's a cost saving but it's also a renewable uh footprint for our power resources. So 5:50 5 minutes, 50 seconds total we don't expect more than between 150 crores of outflow on accounts of maintenance capex and the renewable 5:59 5 minutes, 59 seconds balancing investment left for the renewable part. uh one important uh so from a market standpoint uh the macro 6:08 6 minutes, 8 seconds headwinds all of us are you know aware about but just to reiterate there is extreme uncertainty as far as global 6:15 6 minutes, 15 seconds shipping is concerned you know there is just bizarre events happening where prices are you know volatile 6:22 6 minutes, 22 seconds availability is volatile and customers anxiety around global shipping so shipping remains to be a uh a proxy for 6:30 6 minutes, 30 seconds global geopolitical uncertainty and hence the shipping uncertainty and that plays a role where people are customers 6:39 6 minutes, 39 seconds that migrate to a solution will be you know exposed to the global supply chain. 6:43 6 minutes, 43 seconds Now that's something that we have to take in our stride. We're hoping world will normalize if not today in a few months time and it'll get back to business as usual but that is an 6:52 6 minutes, 52 seconds impediment today. Uh other than that you know there is the where every country is going back to bringing borders on. We 7:00 7 minutes have seen duty measures. We've seen anti-dumping measures. We've seen Trump and US bring in measures to protect local industry. I think every country is 7:08 7 minutes, 8 seconds going to look for their own interest first and to that extent you know protectionist measures are you know I think for us a business as usual uh 7:17 7 minutes, 17 seconds situation and and we are creating strategies that allow us to grow on a sustainable basis. Taking that in our 7:24 7 minutes, 24 seconds stride. uh one of the updates from a business standpoint I think from a product and a solution standpoint is that a lot of people are asking us about 7:32 7 minutes, 32 seconds what's happening on the market what are we doing and we've been speaking about it but I we would like to uh uh share a 7:40 7 minutes, 40 seconds little more color on you know a specific aspect of our solution engineering which is linked to the discharge system so when you have these grinding mills 7:49 7 minutes, 49 seconds you've got grinding media you've got linings and then you've got linings at the discharge end and That's the the we they're calling it new generation 7:57 7 minutes, 57 seconds discharge system. That's part of our overall solution. But we had a big breakthrough last month where uh you 8:04 8 minutes, 4 seconds know one of one of a very marquee uh customer you know we we we implemented 8:12 8 minutes, 12 seconds our solution of the discharge system which is the linings and the you know the uh solution linked to the discharge 8:19 8 minutes, 19 seconds system and it it brought in material benefits which is through code improvement power reduction and uh uh in 8:27 8 minutes, 27 seconds a in a in a larger size mill you So where the operating conditions are significantly 8:34 8 minutes, 34 seconds uh you know abusive in in a sense of the amount of material that's being handled every every hour and the kind of impact 8:41 8 minutes, 41 seconds conditions inside you know and and we over two years we worked with that customer kept sharpening and refining 8:49 8 minutes, 49 seconds our solution doing multiple rounds of supply and finally we've gotten that customer we've gotten that win for the customer right we've gotten that 8:57 8 minutes, 57 seconds important unlock for that one customer in South America America where all these benefits have occurred. uh and and and 9:04 9 minutes, 4 seconds that just reinforces the conversation that we were doing that as we progress to a solution offering which is grinding 9:13 9 minutes, 13 seconds media linings and and and when I say linings it includes you know these solutions around discharge systems where there is a material benefit for the 9:21 9 minutes, 21 seconds customer which is throughut and which is a important problem at the mine site which is where grade of core is worsening in the metal output is 9:30 9 minutes, 30 seconds following you know in which situation these unlock where better throughput actually solves that critical bottleneck for the customers. Uh we've gotten this 9:39 9 minutes, 39 seconds important win. Uh I will caveat it to say that this is it is in a direction. 9:45 9 minutes, 45 seconds So a few quarters back we spoke about our first customer where we got a 15,000 ton uh order for an important uh mine in 9:54 9 minutes, 54 seconds South America. Now you've got a lining uh wind where the proof of concept in terms of all that we have you know been speaking about has come through. I think 10:03 10 minutes, 3 seconds it is all moving in a direction where solutions that AI is providing will have disproportionate benefit for the 10:11 10 minutes, 11 seconds customer or rather play a role in solving the top two or three bottlenecks which is worsening orgrades of which is 10:19 10 minutes, 19 seconds falling metal output. Uh power consumption or the you know the saving in uh the power cost footprint. uh the 10:28 10 minutes, 28 seconds recovery that comes from the you know uh uh copper or gold recovery that comes 10:35 10 minutes, 35 seconds out from the or thanks to the down process benefits. I think all of that is now coming together and we are hoping these solutions ultimately allow for the 10:43 10 minutes, 43 seconds unlock which is for a larger quantity of orders as a combination of linings and dining. I still don't have an answer on 10:51 10 minutes, 51 seconds what will happen. Please uh help us with not asking you know specifics on this quarter, next quarter or next year. I 10:59 10 minutes, 59 seconds think there is a large market there's 800 to a million 800,000 to a million ton forged market you know for gold and 11:07 11 minutes, 7 seconds copper and all mines facing critical issues and we have a solution that we allow that will allow them to unlock you 11:15 11 minutes, 15 seconds know allow them to overcome some of these critical issues and unlock growth for us. So uh keeping that caveat in 11:22 11 minutes, 22 seconds mind we're happy to share this update that that there was an important win in terms of proof of concept of a solution. 11:29 11 minutes, 29 seconds Uh with that said I will have Sanjay you know uh share his comments you know from last few quarters and the board meeting today then we'll get into Q&A. 11:38 11 minutes, 38 seconds So thank you Kunal and a very very warm welcome to all of you and a very good evening to all of you. uh as Kunal explained what has happened is as you 11:47 11 minutes, 47 seconds know we have been over last few calls talking about these trials that are going on in some very large minds. So 11:54 11 minutes, 54 seconds the one that he has spoken about is a successful outcome of that one of the critical trials. It it is very important 12:02 12 minutes, 2 seconds because that establishes the efficacy of the solution that we have been talking about in a very novel way where I 12:11 12 minutes, 11 seconds believe AI is the only company in the world which is offering this solution for ball mills. Apart from the segment solutions that we were offering earlier 12:20 12 minutes, 20 seconds and ballmill is an area of concern for all these mines two things or quality getting depleted or becoming harder. So 12:29 12 minutes, 29 seconds even for maintenance particularly in the metal categories like gold and copper this is was very challenging. We believe 12:37 12 minutes, 37 seconds today what we have now announced what Kunal has announced that this trial success has been sort of watched quite 12:46 12 minutes, 46 seconds eagerly by large minds worldwide and I think that can pave way for a systematic 12:52 12 minutes, 52 seconds and long-term journey for AIA. So you know of course many challenges have been there over 13:00 13 minutes last few quarters people have been asking but now with this solution being uh there uh we felt it appropriate to at 13:08 13 minutes, 8 seconds least share uh that this is what has happened which is very encouraging and uh internally we remain very buoyant and 13:15 13 minutes, 15 seconds confident about medium to long-term very very strong growth pro prospects. So with this I would request the moderator to open the call for Q&A. 13:28 13 minutes, 28 seconds Thank you very much ladies and gentlemen. We will now begin the question and answer session. If you have a question please press star and one on 13:37 13 minutes, 37 seconds your push button phone and await your turn to ask the question when guided by the facilitator. 13:43 13 minutes, 43 seconds If your question has been answered before your turn and you wish to withdraw your request, you may do so by pressing star and two. 13:56 13 minutes, 56 seconds Our first question comes from Vun Jen from Dollar T. Please go ahead. 14:02 14 minutes, 2 seconds Uh yeah, hi uh good evening Punal. Hi, good evening Sanjay. So uh congratulations on a good set of numbers and on the mine conversion. So just on 14:11 14 minutes, 11 seconds that uh so this mine conversion what is the sustainable volume it will add every year to AIA. 14:20 14 minutes, 20 seconds So Wun as we said the current trial was based on uh a combination of lining 14:27 14 minutes, 27 seconds system plus the new generation discharge system. The whole approach that we had adopted over last one and a half to two 14:35 14 minutes, 35 seconds years was to take the clients away from discussion on the pricing which was 14:43 14 minutes, 43 seconds already and always creating headaches about you know anti-dumping and all those uh issues and create a system 14:51 14 minutes, 51 seconds whereby the mining efficiency and the mining output and their operating costs can be effectively significantly altered. 15:01 15 minutes, 1 second So I think what we are now currently envisaging is that it's too early for us to give you any clearcut idea about X 15:09 15 minutes, 9 seconds volume Y volume. What is important is that with this success the addressable 15:15 15 minutes, 15 seconds market which is very huge becomes very closely and immediately reachable. It 15:23 15 minutes, 23 seconds takes time you know I can't just tell you that today I will get X number of orders but very important the same client was very happy and we have now 15:32 15 minutes, 32 seconds got a very very strong reference point where large minds in the world would be eagerly talking again as I repeat the 15:41 15 minutes, 41 seconds strategy is to talk about a solution based on this lining and the discharge system which radically makes that 15:48 15 minutes, 48 seconds problem solved and then as a corollary automatically also talk about branding media which is a high volume business. 15:56 15 minutes, 56 seconds So this is just a strategic shift. 15:58 15 minutes, 58 seconds Volume growth will come should come. Let us wait for a while and let us see how it assimilates. But this what was very 16:05 16 minutes, 5 seconds encouraging what we have shared. So at this point in time we feel it's a little premature to give you any volume guidance but a very positive thing has happened which we wanted to share. 16:17 16 minutes, 17 seconds Uh okay sir and uh uh sir this uh this customer this is a I'm assuming this is a Chilean copper mine uh is that 16:25 16 minutes, 25 seconds understanding right and on on that we were hearing that there are some reports that there's a let's confine it let us confine it to 16:32 16 minutes, 32 seconds one of the very large mines based out of South Africa South America sorry okay okay and on that only s in south 16:40 16 minutes, 40 seconds America we are hearing that there is a sfuric acid shortage because of which some smelting operations in copper mines 16:47 16 minutes, 47 seconds have stopped. So are you also facing any issues like that? 16:51 16 minutes, 51 seconds No no nothing nothing of the sort. See we are talking of a very large headroom. 16:56 16 minutes, 56 seconds Correct. We are not saturated in terms of conversions but we're talking of a very large headroom. Some momentary 17:03 17 minutes, 3 seconds sulfuric acid shortage doesn't affect us in any manner at all in as much as this endeavor is going on. 17:12 17 minutes, 12 seconds Uh okay sir. and and sir uh uh on the realization so this quarter you had the highest ever realization uh it's cost 17:20 17 minutes, 20 seconds 180 per kg so uh sir and you said that it's not sustainable you are guiding 155 so assuming using 17:29 17 minutes, 29 seconds 165 is the if you see the annual average it is 165 and that whereabouts you see what happened this is a function of 17:37 17 minutes, 37 seconds product rates so last quarter we had a very heavy traing in favor of more value added casting and therefore this shift 17:45 17 minutes, 45 seconds plus the rupee depreciation also has a mild partial 17:52 17 minutes, 52 seconds impact on that but I think a sustainable figure is 155 and thereabouts as kunan explained 17:59 17 minutes, 59 seconds uh yes so sir my question on that was that since this conversion you said is like a mil liner plus grinding media and further conversions will also be you 18:07 18 minutes, 7 seconds know disc so it is not grinding what is the sorry the point is that going forward as we model the product 18:15 18 minutes, 15 seconds means you can consider 165 as the right realization. So my question was my question was that since it's a gr it's not a grinding media it's milliner so 18:24 18 minutes, 24 seconds then structurally the realization should be higher only now not because these are you know higher you are right you are right but we the 18:32 18 minutes, 32 seconds the plan is to sell grinding media now right it it is not to sell dust liners or non- grinding media both will grow in 18:40 18 minutes, 40 seconds proportion so which is why consider 165 right now uh okay okay and sir in Q4 your tax rate was much lower like close to 16% or so. 18:50 18 minutes, 50 seconds So why was that? No. 18:53 18 minutes, 53 seconds So first Q4 was the final adjustment of the tax for the whole year minus already provided for. That is the first answer. 19:02 19 minutes, 2 seconds Second answer this year overall for the whole year tax rate is couple of percentage points lower because of two 19:09 19 minutes, 9 seconds reasons. One there was a uh what do I say a refund a significant refund that came in one of our 19:17 19 minutes, 17 seconds subsidiaries almost 15 crores. Second uh the another factor is that in one of 19:25 19 minutes, 25 seconds the other subsidiaries we have also provided for what we call as a deferred tax asset because of a reversal that we are getting in the current year. 19:39 19 minutes, 39 seconds There is a oneoff in this quarter link to other adjustments, reversals, provisions etc. where there is a uh 19:47 19 minutes, 47 seconds there is a 25 cr 30 cr tax lower than what it should. 19:53 19 minutes, 53 seconds Okay. And the last last question from my side. So what was the mill liner utilization for metallic and composite and what is the minimum volume growth guidance for FI27? 20:04 20 minutes, 4 seconds We are not giving any specific numbers about metal or composite. We are doing we have a good traction on the mill 20:12 20 minutes, 12 seconds liner. We will only talk about the overall volumes. Uh but please understand as I said one of the key 20:21 20 minutes, 21 seconds trials where we were very anxious has become successful. So there are good things likely to come. Let us wait for a while. 20:31 20 minutes, 31 seconds Okay sir. Okay. Thank you and all the best. 20:35 20 minutes, 35 seconds Thank you. Our next question is from the line of Ankor Peral with Access Capital. Please go ahead. 20:43 20 minutes, 43 seconds Uh yeah. Hi Sanjay. Hi Kelv. Thank you and congratulations. 20:48 20 minutes, 48 seconds Congratulations for the new client in there. uh you know uh so first question uh you know while uh you are not disclosing from a volume growth 20:55 20 minutes, 55 seconds perspective have we got any uh you know initial orders from this from this customer given that year end order book is is much higher than what it used to 21:04 21 minutes, 4 seconds be last year so from that also successful trial in one of their mines they have immediately also given 21:13 21 minutes, 13 seconds us the order for the second mine conversion that's all I can share at this point in See, we are under very strict 21:21 21 minutes, 21 seconds confidentiality clauses. You must appreciate. Sure. Yeah. 21:25 21 minutes, 25 seconds Sure. No, no worries on that. And uh just a follow up on that uh what is the uh the capacity utilization here for us 21:34 21 minutes, 34 seconds uh both in mining as well as in grinding media. 21:38 21 minutes, 38 seconds Correct. Capacity utilization this year is about 55%. Overall, 21:45 21 minutes, 45 seconds okay. uh but uh there will be higher demand for castings here for this client. Right. So uh has there been a jump in that uh number in castings? 21:53 21 minutes, 53 seconds Casting production have gone up but still we have enough capacities to cater to the expected increasing volumes that 22:01 22 minutes, 1 second might come over next couple of years and as you know as per our policy we always move couple of years in advance. So as 22:08 22 minutes, 8 seconds and when we see the traction coming we have enough wherewithal to quickly currently 22:21 22 minutes, 21 seconds we can go up to 70 75% utilization and as and when the utilization improves we will also keep on adding incremental 22:29 22 minutes, 29 seconds capacity that is where you know at this point in time Ghana as well as China are on a bit slow down mode however we can 22:37 22 minutes, 37 seconds accelerate as and when needed uh great that's helpful and just lastly uh you if you can help uh with the 22:45 22 minutes, 45 seconds update on you know the add the custom dues etc which is going on on multiple countries uh any any changes there and 22:53 22 minutes, 53 seconds any demand take because of that standard score standard score continue that is okay sure that's it from my set thanks 23:01 23 minutes, 1 second you and thank you and all the best thank you thank you our next question comes from 23:08 23 minutes, 8 seconds the line of Dwang Sha with Ant Financial please go ahead yeah hi sir Uh congratulations for the 23:16 23 minutes, 16 seconds good set of numbers. Uh so my major query is like if China and 23:23 23 minutes, 23 seconds Ghana is slowing down some geopolitical tensions are going to be there for next one or two quarters. If we imagine that 23:32 23 minutes, 32 seconds thing, if we expect that thing, then is it okay to again our company will quarterly post a operating profit margin of about a 23% or something like that? 23:45 23 minutes, 45 seconds No, no, that would be difficult to sustain. 23:48 23 minutes, 48 seconds No, I think I think you have mixed up two things. One currently over last 23:55 23 minutes, 55 seconds couple of quarter we have been putting our full force I would say over last one year on this new 24:04 24 minutes, 4 seconds solution and the new system on which we are now offering the global mining customers something unique on the 24:11 24 minutes, 11 seconds platter correct so when we say that China and Ghana are slowing down we 24:18 24 minutes, 18 seconds don't mean to say that shelf what we have said now that the 24:25 24 minutes, 25 seconds focus is clearer we will once again take a call and start accelerating that point number one so that has nothing to do 24:34 24 minutes, 34 seconds with my margins okay I have an operating margin even today my operating aftering other income is about 29% 28 29%. 24:46 24 minutes, 46 seconds What we are seeing in the past that as and when the volume grow as and when the product mix grows and more and more 24:54 24 minutes, 54 seconds grinding media is sold uh because that product mix is bound to then fit in favor of grinding media as a large 25:02 25 minutes, 2 seconds volume giving proposition then the operating margins in absolute numbers will grow but as a percentage can can 25:12 25 minutes, 12 seconds come down in the range of 23 24. This is what you explained. 25:20 25 minutes, 20 seconds Okay. 25:24 25 minutes, 24 seconds Okay. What is the major? The other thing is from three or four quarters like we're expecting that capacity 25:32 25 minutes, 32 seconds utilization is going between 50 55 60 65. 25:37 25 minutes, 37 seconds So is it at this continuation capacity utilization? 25:43 25 minutes, 43 seconds Aren't we facing like in further going forward? Aren't we going to feel the pressure? 25:52 25 minutes, 52 seconds What sort of pressure my friend? I mean uh like for the uh yeah for the shortage 26:00 26 minutes I explained in the earlier question that at current 55% utilization I can go up 26:07 26 minutes, 7 seconds to 70 75. So within the available capacities. Okay. 26:17 26 minutes, 17 seconds Now this is not a automatic line item which just increases. So as soon as we 26:23 26 minutes, 23 seconds start getting the traction we have posed our one brownfield expansion in GC 26:30 26 minutes, 30 seconds Kerala which is nearer to Aabadada not your south Kerala. immediately 26:39 26 minutes, 39 seconds I can further push another 50 to 75,000 tons I have enough of land plus infrastructure available so we will see 26:47 26 minutes, 47 seconds as we go ahead simultaneously 100,000 tapacity 26:54 26 minutes, 54 seconds and China we never face a capacity shortage. 27:08 27 minutes, 8 seconds Okay. And sir, any plans to further usage of the resource are there on the books? Is it like last call it was about 27:17 27 minutes, 17 seconds some uh uh takeover was there or something like buyout was there or something like that? Are we on that track only or we not? 27:27 27 minutes, 27 seconds No. I don't think we have ever talked about any takeover or buyout. So I think there's some confusion here. What we have said is we are conservatively we 27:36 27 minutes, 36 seconds have been maintaining a fairly high level of cash. We have said that till we reach a optimum 27:44 27 minutes, 44 seconds positioning in terms of what efficacy of our solution and stability that we want 27:51 27 minutes, 51 seconds to bring in as a consistent growth and clear direction. We want to carry a little extra cash with us. As soon as we 27:59 27 minutes, 59 seconds reach that we will think of other avenues of reducing that cash but at this point in time there is absolutely 28:05 28 minutes, 5 seconds no such announcement which please note okay that's fine that's all from my side all the best 28:13 28 minutes, 13 seconds thank you sir thank you sir thank you our next question comes from the line of Priyanka Biswas with JM 28:21 28 minutes, 21 seconds Financial please go ahead uh congratulations uh kuras and Sanjay Vai uh uh so particularly I would say 28:30 28 minutes, 30 seconds the conversion itself was a great news uh so just coming back on that uh so can 28:38 28 minutes, 38 seconds you provide me some color like uh this sort of large conversions how should we look at the pipeline let's say if I have 28:46 28 minutes, 46 seconds to take like a two threeear views and based on that uh let's say like today we have a mining volume of something like 28:54 28 minutes, 54 seconds 160 KT right or FY26 so let's say FI 29 or FI30 where are we aspiring to be? 29:03 29 minutes, 3 seconds See, I think the first part is that what we're trying to speak of is that the goal has shifted from just selling 29:12 29 minutes, 12 seconds grinding media to selling a package or a solution which is linked to a disproportionate benefit to the customer 29:19 29 minutes, 19 seconds because if we are able to you know ensure this strategy works then duties, shipping all of that becomes far far 29:28 29 minutes, 28 seconds insignificant you know versus just a commodity supply right or just a product transaction or supply that is the 29:35 29 minutes, 35 seconds endeavor. How do we how do we retool the company or how do we tool the company to survive next 50 years with a clear mode and the mode comes from a sticky 29:44 29 minutes, 44 seconds offering and the offering comes from engineering engineering comes from this solution. So that's the pathway for us. 29:49 29 minutes, 49 seconds So this is the the point is that in a in a mill which is handling a few thousand tons of ore per hour to be able to 29:57 29 minutes, 57 seconds create this you know level of impact is something that has been painful lot of learnings but that has happened now the 30:06 30 minutes, 6 seconds question is and that's what my opening line was or introduction to this you know point was that I can't today 30:15 30 minutes, 15 seconds convert it into goals and you know outcomes So if I'm saying there is 800,000 tons or to a million tons of old 30:23 30 minutes, 23 seconds market today and let's say a 100,000 or 150,000 tons of lining market that is a significant market in South America that 30:31 30 minutes, 31 seconds that where we are now pursuing with a very strategic intent right that here is the goal here is the tactics and and 30:40 30 minutes, 40 seconds once you know this this traction is found it is I don't think there is an answer because we've we've seen this in 30:47 30 minutes, 47 seconds cement in the past where you So in five years a large part of you know the encumber got converted to probe. We've seen this in platinum in South Africa. 30:56 30 minutes, 56 seconds We've seen this with iron ore at let's say 15 17 years ago. So we are hoping that you know once a critical mass is 31:03 31 minutes, 3 seconds reached as far as references is concerned and the solution has been tried by a few people the adoption should be fast. Now that does not mean 31:12 31 minutes, 12 seconds it you know it'll happen in 2 years 4 years 20 years. I we really don't have an answer over there. We are sharing what we are doing from our standpoint. 31:20 31 minutes, 20 seconds You guys have far better networks and references to go speak about you know where what we are saying what does it mean in the scheme of things. So that I 31:28 31 minutes, 28 seconds think it was a long-winded answer. The short answer is we don't know right. We hope you know that what we're doing with one or two or five mills and we've done 31:37 31 minutes, 37 seconds this for other size smaller mediumsiz mills maybe 15 other mills right this is one larger one that we've done in the area. We are hoping that you know this 31:46 31 minutes, 46 seconds this gives us predictable growth going forward but you'll have to allow us a few more quarters or we'll keep updating as more information gets clearer. If I 31:55 31 minutes, 55 seconds share anything now it is more coming from an from an answer that is unsupported by you know ground reality or or signals from the market that I can build on. 32:07 32 minutes, 7 seconds Okay that's very clear. Maybe we can refer back to let's say when you did this large scale cement conversion. So I 32:14 32 minutes, 14 seconds see over FY6 to FYI 10 where your volumes almost literally doubled in a span of 5 years maybe take that as a 32:21 32 minutes, 21 seconds proxy maybe but uh coming back so I think uh this technology you had developed almost like 6 years back if I 32:29 32 minutes, 29 seconds recall correctly this uh discharge systems that we are seeing so the whole bit has been a 10 year journey but the 32:37 32 minutes, 37 seconds whole mining conversation in the form so the solution is a old concept we've been doing it for cement Okay. The mill 32:44 32 minutes, 44 seconds linings has come in 5 6 years ago. The down process for grinding media has been we've been doing that from 2017 18 19. 32:52 32 minutes, 52 seconds So that's been around for five six years. But the discharge system has changed the whole conversation and that [clears throat] is last two years last 32:59 32 minutes, 59 seconds not not even 2 years right. So what we have been saying lining system includes this additional element which is part of 33:06 33 minutes, 6 seconds the lining offering but it's a very different shape and form than what we were talking even 18 months ago. So this is a very recent development and that 33:15 33 minutes, 15 seconds it's built on all the knowledge. It is not a standalone plug and play that something came up and we are now talking about it. It's a journey where we 33:22 33 minutes, 22 seconds discovered you know while we were solving for something else we realized the bigger problem. We realized we have the engineering capability to design a 33:30 33 minutes, 30 seconds solution on top of that and that's what I think excites us the most because that ultimately forms the core uh offering 33:38 33 minutes, 38 seconds through which grinding media linings will be sold. I would say this is not less not older than 18 months. This 33:44 33 minutes, 44 seconds whole the the critical solution that we are now pitching around which the whole solution is built is is last 18 months. 33:54 33 minutes, 54 seconds Okay. Okay. So it's more like a 10 year evolution. So you started from the down system then went to like last year the 34:02 34 minutes, 2 seconds lining part and now you have developed this new generation. So the goal always is how do I 34:10 34 minutes, 10 seconds exactly so so our northstar is that I cannot be a transactional product supplier right which we haven't within 34:17 34 minutes, 17 seconds the mining space we've gone up the value chain right our goal is that how do I I cannot exist on a multi-deade uh 34:26 34 minutes, 26 seconds moddriven offering unless I'm doing something extraordinary difficult to do something that is also disproportionate in impact of the customer right that's 34:34 34 minutes, 34 seconds the path that we have followed in the path that we're doing now. So how do I improve through? How do I reduce cost? 34:40 34 minutes, 40 seconds How do I reduce power? How do I improve recovery? Everything that we're doing is ultimately flowing into those outcomes. 34:46 34 minutes, 46 seconds And as we went kept going forward, we kept discovering better and you know more impactful ways to influence some of these outcomes. And thank just to add 34:55 34 minutes, 55 seconds you know to make a statement as an Indian company that today in this space 35:01 35 minutes, 1 second which is dominated by giants there is nobody in the world offering a similar solution is a very tall statement and I 35:10 35 minutes, 10 seconds think we are very proud about it. So let us wait and see how it unfolds. 35:16 35 minutes, 16 seconds And just last thing if I can squeeze in just uh like from a statistic point of view can you provide like with your 35:24 35 minutes, 24 seconds solution uh what sort of uh savings like if you can let's say quantify a bit like 35:31 35 minutes, 31 seconds uh increased uh let's say yield or maybe as you say greater poly metal output or let's say power reduction. So what are 35:39 35 minutes, 39 seconds the benefits if you can just quantify some more? So I cannot quantify for this specific transaction that's not 35:47 35 minutes, 47 seconds possible. It's not customer like uh in general at least 15% of throughut improvement at 35:54 35 minutes, 54 seconds least I said otherwise it's not material and and and throughut is inversely linked to power. So pra% throughut 36:01 36 minutes, 1 second improvement is 15% power reduction plus other benefits of count process and other things. So that depends on every customer but you know fractional 36:09 36 minutes, 9 seconds improvement is still material and and just to add from a geographical standpoint in some of the regions where power cost is huge power becomes a very 36:19 36 minutes, 19 seconds big driving force in some geographies where throughput improvement is very critical. It becomes a driving force for approaching that particular client. 36:29 36 minutes, 29 seconds Having said that these two factors are massive when it comes to reduction of 36:36 36 minutes, 36 seconds the total cost of ownership, Vishab is just making a savings in terms of consumable part. 36:44 36 minutes, 44 seconds Okay. Uh now it's absolutely clear. Yeah. 36:53 36 minutes, 53 seconds Thank you. Our next question comes from the line of Rajakumar with RK Investment. Please go ahead. 37:02 37 minutes, 2 seconds Can you hear me? Hello. You are audible. You are audible sir. Yeah. 37:07 37 minutes, 7 seconds Yeah. Thanks for the opportunity. Uh sir, this new solutions that we are offering uh is that an expertise that we built post acquisition of Vega Industries Australia. 37:17 37 minutes, 17 seconds Oh nice sir. Vega is a history in terms of way back in 2001. It is nothing. 37:26 37 minutes, 26 seconds Vega acquisitions were all concluded. 37:28 37 minutes, 28 seconds It was not an acquisition. It was a when we when we started off there was an entity that it it is our own fully owned subsidiary. 37:36 37 minutes, 36 seconds It was just a entity that was created you know where global market there were three sales people employed out of that company you know when we originally started and it was not owned out of AI. 37:47 37 minutes, 47 seconds It was just an entity with three people inside and we said rather than creating a new entity let's just fold this into AI. It wasn't an acquisition in that sense. 37:57 37 minutes, 57 seconds Okay. Got it. Sir, uh so this technology that you're talking about so I'm sure you'll be patenting this as well, right? 38:06 38 minutes, 6 seconds There is a patent as far as design is concerned. But it is it in terms of you know cause and error, cause and uh uh uh 38:16 38 minutes, 16 seconds outcomes, right? It is a it is a causal knowledge that that becomes part of our IP. But design will surely be going through a uh patent conversation. Yeah. 38:27 38 minutes, 27 seconds Okay. No, no. The reason for this question is is there a risk that somebody can copy this technology or you AI will have a patent? 38:36 38 minutes, 36 seconds Sir, this technology is not a formula or a Coca-Cola formula which can be copied. It requires 38:45 38 minutes, 45 seconds humongous amount of engineering efforts in terms of designing and application and then finding the right methology and 38:55 38 minutes, 55 seconds massive interaction with a client of a size which is several times bigger than 39:01 39 minutes, 1 second AIA and who is ready to stop his mind and allow me to do this conversion for a 39:09 39 minutes, 9 seconds few days. So you know it's not just something that anybody can walk in. We are not at all worried about somebody copying. That's much all I can say honestly. 39:19 39 minutes, 19 seconds Okay. Got it sir. Uh sir the second question is the housekeeping question. 39:23 39 minutes, 23 seconds So uh just uh looking at the inventory numbers between 25 and 26 they have gone up almost 25% whereas your uh production 39:31 39 minutes, 31 seconds sales numbers are like more or less like 2 3% plus or minus. So just want to know what is the reason for this 25% increase in 39:40 39 minutes, 40 seconds inventory. I so 100% of our stock is built against orders. There is the South American uh order that got you know 39:49 39 minutes, 49 seconds introduced I think from October November this year and uh there was a change in billing cycle for another L where you 39:56 39 minutes, 56 seconds know the billing shifted from when it moved from India to actually when they consumed. So both of that amount you 40:03 40 minutes, 3 seconds know it was a delayed invoicing and we just translated into little more stock. 40:08 40 minutes, 8 seconds So order revenue became stock and that on a rotating basis continues then. So it is all material for a customer. It's 40:17 40 minutes, 17 seconds housekeeping then actual addition of stock. 40:21 40 minutes, 21 seconds Okay. And lastly s is it fair to assume that the volume journey for AI will now start go forward? 40:28 40 minutes, 28 seconds That is all our endeavor sir. Okay sir. Thank you so much. Our endeavor. Yeah. 40:37 40 minutes, 37 seconds Yeah. 40:38 40 minutes, 38 seconds Thank you so much sir. All the very best. Thank you. 40:43 40 minutes, 43 seconds Thank you. Our next question comes from the line of Chiag Machala with Syndrome Broking. Please go ahead. 40:51 40 minutes, 51 seconds Yeah. Thank you and good evening to everybody. Uh sir, first question is as you mentioned in the opening remark that you know I mean post this Middle East 40:59 40 minutes, 59 seconds crisis you know there are some globality. 41:03 41 minutes, 3 seconds Uh so sir uh last time you know in FI25 uh uh we had seen some of the preferrals in terms of conversion from forge to 41:11 41 minutes, 11 seconds high etc by customer as generally they would prefer uh not to do this when uh shipping uh related uncertainties are 41:19 41 minutes, 19 seconds high. So just wanted to know how is the mood with uh you know miners globally currently uh in in terms of conversion 41:26 41 minutes, 26 seconds in FI27 do you uh see uh you know those getting fasttracked or there is a possibility of delays 41:35 41 minutes, 35 seconds so currently while shipping cost is a challenge however we don't see that as a 41:42 41 minutes, 42 seconds limiting factor to the transit period has been elongated slightly by maybe 10 15 41:50 41 minutes, 50 seconds However, the shipping cost which initially after the war was very high has now come down to a reasonably 41:57 41 minutes, 57 seconds moderate level. I don't think that's a concern and most importantly the efficacy and the solution that we are 42:04 42 minutes, 4 seconds talking about. It is far far away from any of the commodity pricing worries. So 42:11 42 minutes, 11 seconds frankly it is not at all material for the whole effort. So right now we are not actually worried about it and anyway we work with 100% pass through. 42:22 42 minutes, 22 seconds Yeah correct sir. Yeah but I was just thinking in terms of their mood to you know I mean go ahead with a new solution in such mines. 42:31 42 minutes, 31 seconds Sir as I imagine a copper mine where over last 5 years the output has dropped 42:37 42 minutes, 37 seconds by 10 20 15%. that copper mine will have to invest hundreds of millions in terms 42:44 42 minutes, 44 seconds of their ball mill and crushing capacities to maintain that output. We are going there and telling him that without any capex without anything we 42:53 42 minutes, 53 seconds will give you a solution where you can maintain your output instead of reducing it or in fact increase your throughput shipping cost. 43:06 43 minutes, 6 seconds Correct. 43:08 43 minutes, 8 seconds So there's no such mode. Okay. I mean the mode is really the efficacy and the remarkable positive impact of the 43:17 43 minutes, 17 seconds solution. Nothing to do with any costing. 43:21 43 minutes, 21 seconds Sure. Sure sir. Second question is that uh you know sir it's heartening to know that in one of the large mine server 43:28 43 minutes, 28 seconds trials have been successful. Uh if I'm not wrong sir we were doing such trials in two large mines. So sir any update on 43:35 43 minutes, 35 seconds the second mine? It is going on sir. It is going on. We are expecting something to happen over next couple of months. 43:44 43 minutes, 44 seconds Okay. And sir, lastly uh sir uh have we uh I mean started winning any volumes 43:51 43 minutes, 51 seconds back from Brazil after the end of that sunset review clause. 43:56 43 minutes, 56 seconds We doing 68,000 tons in Brazil. But uh it still needs to scale up. It's not gone through the scale up we had hoped for. 44:07 44 minutes, 7 seconds Okay. Okay, sir. Thanks. Thank you. 44:13 44 minutes, 13 seconds Thank you. Our next question comes from the line of War Vun Jen from Dollar Capital. Please go ahead. 44:19 44 minutes, 19 seconds Uh yeah. Hi sir, just a couple of questions. Uh I had missed. So sir, in your balance sheet, I've seen that uh you have you had a short-term borrowing 44:28 44 minutes, 28 seconds of 485 crores that has gone to zero. So you had earlier said you use this export packing credit limit because there is 44:36 44 minutes, 36 seconds interest interestion in that. So, so you have stopped using that. 44:42 44 minutes, 42 seconds Can you repeat? I think it's conventional. No, no, no, no. So, you know, it's very very momentary or functional what we were doing earlier 44:50 44 minutes, 50 seconds that we were trying to sort of utilize lower cost credit and trying to work out 44:57 44 minutes, 57 seconds on a little bit of arbitrage. But that is all cyclical. It doesn't happen consistently and there's no specific 45:04 45 minutes, 4 seconds reason why it just happens in cycles. More of a treasury function also. 45:13 45 minutes, 13 seconds Uh okay. Okay. And sir uh any from the treasury like you have 4,300 K of cash. 45:19 45 minutes, 19 seconds So any plan so there's been lot of uh I think couple of years that you know the plan has not come forth. So anyway to a 45:28 45 minutes, 28 seconds previous to a previous question I had replied that we have deliberately and 45:35 45 minutes, 35 seconds consciously uh kept a little higher level of cash though it impacts my ROC's so if my 21 45:44 45 minutes, 44 seconds 22% ROC without this cash goes up to 35 37% we are conscious about it having said that 45:53 45 minutes, 53 seconds we are working on many fronts give us at least 6 to 12 months more I'm sure today even today at the board level we had 46:01 46 minutes, 1 second this discussions so we are very conscious about it allow us this luxury for a few more quarters that's all I have to say 46:09 46 minutes, 9 seconds and sir on the dollar rupee thing so since rupee has been depreciating so much so do your any of the customers come back and say that you know they 46:17 46 minutes, 17 seconds also want some rebate or some price negotiation there or you get to keep the entire benefit I I think we we've already settled this 46:26 46 minutes, 26 seconds question in the past where we benefit momentarily because most customers are except US are importing in a local 46:35 46 minutes, 35 seconds currency Canadian dollars, real, euro, you know, South Africa whatever that currency is. So generally I think there 46:44 46 minutes, 44 seconds is a disconnect where now where rupee has weakened more than other currency but generally they expect a lower they expect a lower dollar price so that 46:53 46 minutes, 53 seconds their local currency cost does not go up. So for us we a depreciating currency is better than an appreciating currency 47:00 47 minutes because we get to keep some but as a concept I have to I have to reset or I want to reset my dollar price. You get 47:07 47 minutes, 7 seconds it? So, so a weakening currency when it when it weakens, you know, the the the reset in dollar may take a quarter or 47:14 47 minutes, 14 seconds two and but till that time you know we we we have a little more benefit for a for for a quarter or two and then you 47:22 47 minutes, 22 seconds know one can assume a lot of it being passed through. 47:27 47 minutes, 27 seconds Uh okay sir. Okay. And in in the last year sir you had guided uh close to uh 300 cr of this power capex. 47:36 47 minutes, 36 seconds uh so uh have you like have you been able to do that and uh what is the power uh because I think the power cost in 47:44 47 minutes, 44 seconds this quarter was close to 5.8% 8% as a percentage of sales. So will that be structurally lower as more capacity of power comes on? 47:53 47 minutes, 53 seconds Yeah. So about 30 odd crores of balancing 30 30 odd crores of balancing capex is 48:01 48 minutes, 1 second required to be incurred in completing the ongoing hybrid captive hybrid group captive scheme 48:10 48 minutes, 10 seconds project that we are going on. So just to give you a perspective our current consumption annual is about 30 cr units 48:20 48 minutes, 20 seconds at current level it may go up correct is once this rated capacity which I will 48:27 48 minutes, 27 seconds achieve will be almost equal to about 100 megawatt in terms of my renewables 48:35 48 minutes, 35 seconds this at peak I should be able to generate about 20 cr units. 48:41 48 minutes, 41 seconds So which means I'll become almost 60 65% dependent on my own captive renewable 48:50 48 minutes, 50 seconds power. Now these are all under group captive. So as again 49:00 49 minutes this should come around five and a half net but my investment for this is relatively much lower. 49:12 49 minutes, 12 seconds Okay sir. Okay. Uh okay sir that's that's all for me. Thank you and all the best. Thank you. 49:19 49 minutes, 19 seconds Thank you. Our next question comes from the line of Lokesh Manik with Valam Capital. Please go ahead. 49:27 49 minutes, 27 seconds Yes. Good evening. 49:30 49 minutes, 30 seconds Uh can you can you sorry to interrupt? Lesh is better. Yeah. Yes. Yeah. Is it better? 49:38 49 minutes, 38 seconds Please go ahead. Yeah. Yeah. Go ahead. 49:42 49 minutes, 42 seconds So, uh, Sanjay, just one question and one suggestion. One suggestion was that if you could, you know, going forward, 49:49 49 minutes, 49 seconds uh, you know, provide us with, uh, you know, percentage of revenue coming from new solution offering. I appreciate it is very small today. uh we don't need 49:58 49 minutes, 58 seconds the pricing and the quantity information but percent of sales coming will give us an idea in terms of you know how the uh 50:05 50 minutes, 5 seconds how the strategy is moving uh quarter to quarter or going forward year to year you know so it will just give some qualitative sense uh just a suggestion 50:14 50 minutes, 14 seconds on that front and second was a question on uh with this new offering uh would 50:20 50 minutes, 20 seconds the time of time for conversion reduce versus you know acquiring a new customer where you would take at least three to 50:27 50 minutes, 27 seconds four years to establish your uh credentials versus you know with a new solution offering you can do it much 50:34 50 minutes, 34 seconds faster. Is that is that the case uh you know from your recent s Yeah. So, so for 50:41 50 minutes, 41 seconds a time to market it, it it surely helps because now there's a better reference right in the process. There is skepticism or friction for the customer 50:50 50 minutes, 50 seconds to say whether lower or not was having done it at an important mindset surely helps to confidence but I think this 50:57 50 minutes, 57 seconds announcement was also to reinforce that it's a very interesting solution that we are now crystallizing as we go forward. 51:04 51 minutes, 4 seconds So it's both case right our own confidence that all that we are seeing is coming true. We had the confidence we knew the technology will will work. 51:13 51 minutes, 13 seconds We've done it with smaller mind with smaller mills. But to get the solution to work at a bigger 51:20 51 minutes, 20 seconds mill gives us reinforces our confidence in it. Number one reinforces the fact that my solution is extraordinary or 51:27 51 minutes, 27 seconds disproportionate and comfort of course and and hopefully a lower conversion time. But like I said it ultimately the 51:35 51 minutes, 35 seconds signals today I can't convert [clears throat] that into 2,000 5,000 100,000 tons in two years right so we still don't have that 51:43 51 minutes, 43 seconds so that's correct so for sure so for the 15 m that you've implemented have you seen the time to market reduced from 51:50 51 minutes, 50 seconds four years that was just my understanding just a 15 m are in different countries they have different mill configurations 51:59 51 minutes, 59 seconds different operating conditions what I'm saying is there are two parallel things one is building out the solution and second is a reference list 52:06 52 minutes, 6 seconds right I think what I'm saying is I mean but I cannot give you an 52:15 52 minutes, 15 seconds objective answer there what I'm trying to tell you is that it will still take time but objectively 52:22 52 minutes, 22 seconds these are important uh developments that hopefully will feed into lower conversion time understood understood that's it from my 52:30 52 minutes, 30 seconds side thank you so much thank Thank you. 52:34 52 minutes, 34 seconds Thank you ladies and gentlemen to ask a question you may press star and one. Our next question is from the line of Ankor Pereal from Access Capital. Please go ahead. 52:44 52 minutes, 44 seconds Uh yeah. Hi sir. Thanks uh for the followup. So uh first question uh you know if I look at our last uh not not 52:52 52 minutes, 52 seconds specific for FI26 but let's say even 25 and 26 put together uh there is an absolute increase in uh realization on a 53:00 53 minutes per turn basis. uh while the cost here is largely flat or maybe down, I'm referring more on COGS side. Uh would it 53:08 53 minutes, 8 seconds be fair to say that this increase in realization is largely a function of product mix? Maybe more of casting media, casting getting sold versus grinding media here. 53:19 53 minutes, 19 seconds So I think as of now my raw material cost is at one of the highest levels today this quarter right with the Iran 53:27 53 minutes, 27 seconds you know war Russia Russia material commodity. 53:34 53 minutes, 34 seconds So it has been volatile. So so my raw material absolute rupees per kilo has gone up. My selling price has gone up. 53:41 53 minutes, 41 seconds Number one my shipping cost has gone up is reflected in my selling price. My current year has moved from 75 78 80 to 53:49 53 minutes, 49 seconds 95. So that is reflected in my realization and my product mix is part of it. So it's a combination of all four things. I don't think we'll be able to 53:57 53 minutes, 57 seconds strip it out to say which is why to say what is which you know element next year 165 is a fair uh realization to consider. 54:09 54 minutes, 9 seconds Uh sure. Uh but just thinking aloud if uh you know as a solution business keeps on picking up uh which is where more of 54:16 54 minutes, 16 seconds castings will get occupied versus not only grinding media uh won't the directionally the realization growth will sort of 54:25 54 minutes, 25 seconds not really because today also a lot of our business in cement some part of mining is solutiondriven but the nature 54:32 54 minutes, 32 seconds of the solution is changing it is still grinding media and casting right today also I'm doing you know a a reasonable portion of my volume comes from 54:40 54 minutes, 40 seconds castings. Right? So castings have always been and will continue to be important part over here. What we are specifically discussing is the intervention in the 54:48 54 minutes, 48 seconds impact of the casting bit. We don't want to sell only casting that it cannot function without the grinding media and sync with the whole operating condition. 54:56 54 minutes, 56 seconds Right? The the the the impact of castings are not just wear parts but are tools that are winging disproportionate 55:03 55 minutes, 3 seconds benefit as part of the solution which includes grinding media. So what that you cannot just strip away castings 55:10 55 minutes, 10 seconds and say realization. It will we will the intent endure and the solution is to sell the whole package which includes 55:17 55 minutes, 17 seconds blending media and casting which is where considering much above 165 may not be a fair assumption. 55:25 55 minutes, 25 seconds Sure that's that's very clear and just second bit uh the earlier order of around you know 15 or thousand tons uh 55:32 55 minutes, 32 seconds from the South American client u should that uh you know volume start coming in uh this year any timelines you can share on that 55:40 55 minutes, 40 seconds no no it has already started huh dispatches okay uh uh so last year it started 55:47 55 minutes, 47 seconds no no the dispatches started last year it will it this quarter is January quarter would have started seeing some invoicing I think a lot of that will 55:56 55 minutes, 56 seconds come in in this quarter and ongoing first quarter of this year onwards. Some of it is there in the fourth quarter but it will really become dispatches from 56:06 56 minutes, 6 seconds India started in October. Invoicing will happen from I think started from sometime in February January February and it will get into regular stream from this quarter. 56:14 56 minutes, 14 seconds Sure. Sure sir. Uh that's very helpful. Thank you and all the best. Thanks. Thank you. 56:21 56 minutes, 21 seconds Thank you. As there are no more questions, I would now like to hand the conference over to the AIA engineering management team. Please go ahead sir. 56:30 56 minutes, 30 seconds Thank you uh uh everyone for joining. Uh as usual, SV and I are available for any questions offline and we look forward to 56:40 56 minutes, 40 seconds connecting uh at the end of the first quarter uh next year. Thank you. Thank you. Thank you. Thank you. 56:47 56 minutes, 47 seconds Ladies and gentlemen, this concludes your conference for today. 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